County governments are on the brink of crisis as governors issue a 14-day ultimatum to the National Government, demanding the immediate restoration of KES 38.4 billion in diverted funds. The Council of Governors (CoG) has warned of a total shutdown of county services should the funds not be reinstated, highlighting the severe budget cuts that have crippled critical sectors.
The standoff follows the recent passage of the County Governments Additional Allocation Bill, 2025, which slashed funding for key areas, including health, agriculture, water, fisheries, roads, and trade. The governors have condemned what they describe as “deliberate and unconstitutional budgetary cuts” to devolved units, warning that the reductions threaten essential service delivery.
In addition to demanding the reversal of the budget cuts, the governors have called upon the National Treasury to immediately release KES 78.03 billion in delayed county equitable share arrears for the months of January, February, and March. The prolonged delays, they argue, have left counties struggling to pay workers and fund development projects.
“The Council unequivocally condemns the unconstitutional budgetary cuts and calls for adequate resourcing of counties to ensure uninterrupted and effective service delivery,” the CoG stated.
The ongoing financial strain on counties has raised concerns over the sustainability of devolution, with governors warning that the failure to disburse funds threatens to roll back gains made in governance and development at the grassroots level.
As the standoff intensifies, all eyes are now on the National Treasury and the central government’s response. If the demands are not met within the stipulated 14-day deadline, the country could see a widespread halt of county services, affecting millions of Kenyans.
The CoG has reiterated its commitment to defending devolution and ensuring counties receive the resources necessary to function effectively, vowing to take further action if the financial impasse is not resolved.
